Endogenous growth, economic fluctuations and capital accumulation: 445-461
The work aims to remedy the shortcomings of previous growth models by examining imperfect information and financial constraints in a New Keynesian setting. Capital-market imperfections and related information asymmetries induce agents to be risk averse, and give rise to the net worth of firms and ba...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2013-10-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10631 |
| _version_ | 1811172466910822400 |
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| author | M. GALLEGATI |
| author_facet | M. GALLEGATI |
| author_sort | M. GALLEGATI |
| collection | DOAJ |
| description | The work aims to remedy the shortcomings of previous growth models by examining imperfect information and financial constraints in a New Keynesian setting. Capital-market imperfections and related information asymmetries induce agents to be risk averse, and give rise to the net worth of firms and banks. Asymmetric information binds together banks’ lending and firms’ borrowing, effecting the aggregate amount of production and investment and potentially causing instability. The authors theorise that this effect on financial constraints is large and persistent enough to constitute an endogenous determination of cyclical fluctuations as well as of trend.
JEL: E10
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| first_indexed | 2024-04-10T17:30:34Z |
| format | Article |
| id | doaj.art-aec408ca630d4f438c82990b750bf251 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:30:34Z |
| publishDate | 2013-10-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-aec408ca630d4f438c82990b750bf2512023-02-03T16:46:44ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432013-10-014618710.13133/2037-3643/10631Endogenous growth, economic fluctuations and capital accumulation: 445-461M. GALLEGATIThe work aims to remedy the shortcomings of previous growth models by examining imperfect information and financial constraints in a New Keynesian setting. Capital-market imperfections and related information asymmetries induce agents to be risk averse, and give rise to the net worth of firms and banks. Asymmetric information binds together banks’ lending and firms’ borrowing, effecting the aggregate amount of production and investment and potentially causing instability. The authors theorise that this effect on financial constraints is large and persistent enough to constitute an endogenous determination of cyclical fluctuations as well as of trend. JEL: E10 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10631Growth modelsAsymmetric information |
| spellingShingle | M. GALLEGATI Endogenous growth, economic fluctuations and capital accumulation: 445-461 PSL Quarterly Review Growth models Asymmetric information |
| title | Endogenous growth, economic fluctuations and capital accumulation: 445-461 |
| title_full | Endogenous growth, economic fluctuations and capital accumulation: 445-461 |
| title_fullStr | Endogenous growth, economic fluctuations and capital accumulation: 445-461 |
| title_full_unstemmed | Endogenous growth, economic fluctuations and capital accumulation: 445-461 |
| title_short | Endogenous growth, economic fluctuations and capital accumulation: 445-461 |
| title_sort | endogenous growth economic fluctuations and capital accumulation 445 461 |
| topic | Growth models Asymmetric information |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10631 |
| work_keys_str_mv | AT mgallegati endogenousgrowtheconomicfluctuationsandcapitalaccumulation445461 |